The government has appointed consultants for planning a potential bankruptcy of Thames Water

• The government has appointed consultants for planning the potential bankruptcy of Thames Water.
• The company is in negotiations with creditors for a rescue deal.
• Thames Water is trying to avoid fines from the regulator Ofwat.

On September 12, 2025, the government of Great Britain appointed specialists in banking to prepare for the potential bankruptcy of the company Thames Water. This company provides water to 16 million consumers.

The Secretary of State for Environment Steve Reed signed a decision to involve the company FTI Consulting for the development of plans for the bankruptcy introduction of a special administrative regime (SAR) for Thames Water.

This step indicates that FTI Consulting may become the administrator in case the government decides to activate the SAR, however, the final decision must be approved by the court.

The government aims to prevent such a development of events, especially since the Ministry of Finance previously indicated that potential expenditures of 4 billion pounds sterling could weigh on its shoulders. This procedure must ensure uninterrupted water supply for consumers, but it also leads to additional expenditures for the government.

Thames Water previously faced a failure earlier this year when its chosen investor KKR withdrew from the deal. Currently, the company is negotiating with the regulator Ofwat regarding the introduction of capital into the company, which has 17.7 billion pounds sterling in net debt.

The company is trying to convince Ofwat to lift fines totaling more than 1 billion pounds sterling for failing to invest in infrastructure to prevent sewage from leaking, in order to secure a rescue deal.

A representative of Thames Water stated that their goal lies in a complex and fundamental recapitalization, which includes returning the company to a stable financial foundation.

However, the company has faced criticism over plans to pay millions of pounds sterling in dividends while seeking to obtain a loan from external creditors for 3 billion pounds sterling.

A government representative stated that the government always acts in national interests and is ready for all possible scenarios, including the possibility of imposing a special administrative regime.

Tags: Europe/Politics/Economy